[Congressional Record (Bound Edition), Volume 163 (2017), Part 11]
[Senate]
[Pages 15931-15935]
[From the U.S. Government Publishing Office, www.gpo.gov]




                        ARMS SALES NOTIFICATION

  Mr. CORKER. Mr. President, section 36(b) of the Arms Export Control 
Act requires that Congress receive prior notification of certain 
proposed arms sales as defined by that statute. Upon such notification, 
the Congress has 30 calendar days during which the sale may be 
reviewed. The provision stipulates that, in the Senate, the 
notification of proposed sales shall be sent to the chairman of the 
Senate Foreign Relations Committee.
  In keeping with the committee's intention to see that relevant 
information is available to the full Senate, I ask unanimous consent to 
have printed in the Record the notifications which have been received. 
If the cover letter references a classified annex, then such annex is 
available to all Senators in the office of the Foreign Relations 
Committee, room SD-423.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                                  Defense Security


                                           Cooperation Agency,

                                     Arlington, VA, Oct. 12, 2017.
     Hon. Bob Corker,
     Chairman, Committee on Foreign Relations,
     U.S. Senate, Washington, DC.
       Dear Mr. Chairman: Pursuant to the reporting requirements 
     of Section 36(b)(1) of the Arms Export Control Act, as 
     amended, we are forwarding herewith Transmittal No. 17-26, 
     concerning the Air Force's proposed Letter(s) of Offer and 
     Acceptance to the Government of Kuwait for defense articles 
     and services estimated to cost $342.6 million. After this 
     letter is delivered to your office, we plan to issue a news 
     release to notify the public of this proposed sale.
           Sincerely,
                                                Charles W. Hooper,
                                Lieutenant General, USA, Director.
       Enclosures.


                         Transmittal No. 17-26

     Notice of Proposed Issuance of Letter of Offer Pursuant to 
         Section 36(b)(1) of the Arms Export Control Act, as 
         amended
       (i) Prospective Purchaser: Government of Kuwait.
       (ii) Total Estimated Value:
       Major Defense Equipment* $0.0 million.
       Other $342.6 million.
       Total $342.6 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE): None.
       Non-MDE: Non-MDE items and services for three years (with 
     option for two additional years) of follow-on support of two 
     (2) C-17 aircraft includes participation in the Globemaster 
     III Integrated Sustainment Program (GISP), contract logistic 
     support, Class I modifications and kits support, in-country 
     contractor support, alternate mission equipment, major 
     modification and retrofit, software support, aircraft 
     maintenance and technical support, support equipment, 
     personnel training and training equipment, additional spare 
     and repair parts, technical orders and publications, 
     airworthiness certification support, engine spares, engine 
     maintenance and logistics support, inspections support, on-
     site COMSEC support, Quality Assurance and other U.S. 
     Government and contractor engineering, logistics and program 
     support. Required upgrades will include fixed installation 
     satellite antenna, Mode 5, plus installation and sustainment, 
     Automatic Dependent Surveillance-Broadcast Out, and other 
     related elements of logistics and program support.
       (iv) Military Department: Air Force (X7-D-QAH).
       (v) Prior Related Cases, if any: KU-D-SAA.
       (vi) Sales Commission, Fee, etc., Paid, Offered, or Agreed 
     to be Paid: None.
       (vii) Sensitivity of Technology Contained in the Defense 
     Article or Defense Services Proposed to be Sold: See Attached 
     Annex.
       (viii) Date Report Delivered to Congress: October 12, 2017.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

 Kuwait--Continuation of C-17 Logistics Support Services and Equipment

       The Government of Kuwait has requested three years (with 
     option for two additional years) of follow-on support of two 
     (2) C-17 aircraft, which includes participation in the

[[Page 15932]]

     Globemaster III Integrated Sustainment Program (GISP), 
     contract logistic support, Class I modifications and kits 
     support, in-country contractor support, alternate mission 
     equipment, major modification and retrofit, software support, 
     aircraft maintenance and technical support, support 
     equipment, personnel training and training equipment, 
     additional spare and repair parts, technical orders and 
     publications, airworthiness certification support, engine 
     spares, engine maintenance and logistics support, inspections 
     support, on-site COMSEC support, Quality Assurance and other 
     U.S. Government and contractor engineering, logistics, and 
     program support. Required upgrades will include fixed 
     installation satellite antenna, Mode 5, plus installation and 
     sustainment, Automatic Dependent Surveillance-Broadcast Out, 
     and other related elements of logistics and program support. 
     The estimated cost is $342.6 million.
       This proposed sale will contribute to the foreign policy 
     and national security of the United States by helping to 
     improve the security of a friendly country. Kuwait plays a 
     large role in U.S. efforts to advance stability in the Middle 
     East, providing basing, access, and transit for U.S. forces 
     in the region.
       This proposed sale is required to maintain the operational 
     readiness of the Kuwaiti Air Force C-17 aircraft. Kuwait's 
     current FMS contract supporting its C-17's will expire in 
     September of 2017. Kuwait will have no difficulty absorbing 
     this support.
       The proposed sale of this equipment and support will not 
     alter the basic military balance in the region.
       The prime contractor will be the Boeing Company, Chicago, 
     IL. The purchaser typically requests offsets. Any offset 
     agreement will be defined in negotiations between the 
     purchaser and the contractor.
       There is an on-going Foreign Military Sale (FMS) case 
     providing C-17 sustainment services. There are currently nine 
     (9) contractors from Boeing Company (aircraft) in-country 
     providing Contractor Engineering Technical Services (CETS) on 
     a continuing basis.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         Transmittal No. 17-26

     Notice of Proposed Issuance of Letter of Offer Pursuant to 
         Section 36(b)(1) of the Arms Export Control Act

                           Annex Item No. vii

       (vii) Sensitivity of Technology:
       1. This sale will involve the release of sensitive 
     technology to the Government of Kuwait in the performance of 
     services to sustain two (2) Kuwaiti C-17 aircraft. While much 
     of the below equipment supporting the C-17 is not new to the 
     country, there will be replenishment spares of these 
     following sensitive technologies purchased to support the 
     fleet.
       2. The Force 524D is a 24-channel Selective Availability 
     Anti-Spoofing Module (SAASM) based Global Positioning System 
     (GPS) receiver with Precise Positioning Service (PPS) 
     capability built upon Trimble's next generation GPS 
     technology. The Force 524D retains backward compatibility 
     with the proven Force 5GS while adding new functionality to 
     interface with digital antenna electronics to significantly 
     improve Anti-Jam (AJ) performance. The host platform can 
     select the radio frequency (RF) or Digital Antenna 
     Electronics (DAE) interface. In the digital mode, the Force 
     524D is capable of controlling up to 16 independent beams. 
     The hardware and software associated with the 542D receiver 
     card is UNCLASSIFIED.
       3. The C-17 aircraft will be equipped with the GPS Anti-Jam 
     System (GAS-1) antenna which consists of a multi-element 
     Controlled Reception Pattern Antennas (CRPA) and separate 
     antenna electronics which is able to recognize multiple 
     sources of deliberate jamming and other electrical 
     interference allowing the navigation equipment to function 
     safely, accurately, and efficiently in the presence of 
     multiple jammers. The hardware is UNCLASSIFIED.
       4. The GPS Inertial Reference Unit (IRU) is a type of 
     inertial sensor which uses only gyroscopes to determine a 
     moving aircraft's change in angular direction over a period 
     of time. Unlike the inertial measurement unit, IRUs are 
     generally not equipped with accelerometers, which measure 
     acceleration forces.
       IRUs are used for altitude control and navigation of 
     vehicles with relatively constant acceleration rates, such as 
     larger aircraft as well as geosynchronous satellites and deep 
     space probes. The GPS IRU is UNCLASSIFIED.
       5. Crypto applique for Mode 5 Identification Friend or Foe 
     (IFF), which includes hardware that is UNCLASSIFIED.
       6. Software, hardware, and other data/information, which is 
     sensitive, is reviewed prior to release to protect system 
     vulnerabilities, design data, and performance parameters. 
     Potential compromise of these systems is controlled through 
     management of the basic software programs of highly sensitive 
     systems and software-controlled weapon systems on a case-by-
     case basis.
       7. Kuwait is both willing and able to protect United States 
     Classified Military Information (CMI). Kuwaiti physical and 
     document security standards are equivalent to U.S. standards. 
     Kuwait has demonstrated its willingness and capability to 
     protect sensitive military technology and information 
     released to its military in the past. Kuwait is firmly 
     committed to its relationship with the U.S. and to its 
     promise to protect CMI and prevent its transfer to a third 
     party. The Government of Kuwait signed a Technical Security 
     Arrangement (TSA) with the USG on 01 January 1989 that 
     commits them to the protection of CMI.
       8. If a technologically advanced adversary were to obtain 
     knowledge of the specific hardware or software source code in 
     this proposed sale, the information could be used to develop 
     countermeasures which might reduce weapon system 
     effectiveness or be used in the development of systems with 
     similar or advanced capabilities. The benefits to be derived 
     from this sale in the furtherance of the U.S. foreign policy 
     and national security objectives, as outlined in the Policy 
     Justification, outweigh the potential damage that could 
     result if the sensitive technology were revealed to 
     unauthorized persons.
       9. All defense articles and services listed on this 
     transmittal are authorized for release and export to the 
     Government of Kuwait.
                                  ____

                                      Defense Security Cooperation


                                                       Agency,

                                  Arlington, VA, October 11, 2017.
     Hon. Bob Corker,
     Chairman, Committee on Foreign Relations,
     U.S. Senate, Washington, DC.
       Dear Mr. Chairman: Pursuant to the reporting requirements 
     of Section 36(b)(1) of the Arms Export Control Act, as 
     amended, we are forwarding herewith Transmittal No. 17-47, 
     concerning the Navy's proposed Letter(s) of Offer and 
     Acceptance to the Government of the Czech Republic for 
     defense articles and services estimated to cost $575 million. 
     After this letter is delivered to your office, we plan to 
     issue a news release to notify the public of this proposed 
     sale.
           Sincerely,
                                                Charles W. Hooper,
                                Lieutenant General, USA, Director.
     Enclosures.


                         Transmittal No. 17-47

     Notice of Proposed Issuance of Letter of Offer Pursuant to 
         Section 36(b)(1) of the Arms Export Control Act, as 
         amended
       (i) Prospective Purchaser: Government of the Czech 
     Republic.
       (ii) Total Estimated Value:
       Major Defense Equipment* $335.9 million.
       Other $239.1 million.
       Total $575.0 million.
       (iii) Description and Ouantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE): Twelve (12) UH-1Y Utility 
     Helicopters. Twenty-five (25) T-700 GE 401C Engines (twenty-
     four (24) installed, one (1) spare). Thirteen (13) Honeywell 
     Embedded Global Positioning Systems (GPS)/Inertial Navigation 
     System (INS) (EGI) (twelve (12) installed, one (1) spare). 
     Twelve (12) 7.62mm M240 Machine Guns.
       Non-MDE includes: Brite Star II FLIR system, Aircraft 
     Survivability Equipment (ASE) (includes the AN/AAR-47 Missile 
     Warning and Laser Detection System, AN/ALE-47 Counter Measure 
     Dispensing System (CMDS) and the AN/APR-39 Radar Warning 
     Receiver (RWR)), Joint Mission Planning Systems, Helmet 
     Mounted Displays, communication equipment, small caliber gun 
     systems including GAU-17A and GAU-21, electronic warfare 
     systems, Identification Friend or Foe (IFF) Mode 4/5 
     transponder, support equipment, spare engine containers, 
     spare and repair parts, tools and test equipment, technical 
     data and publications, personnel training and training 
     equipment, U.S. government and contractor engineering, 
     technical, and logistics support services, and other related 
     elements of logistics and program support.
       (iv) Military Department: Navy.
       (v) Prior Related Cases, if any: None.
       (vi) Sales Commission, Fee, etc., Paid, Offered, or Agreed 
     to be Paid: None.
       (vii) Sensitivity of Technology Contained in the Defense 
     Article or Defense Services Proposed to be Sold: See Attached 
     Annex.
       (viii) Date Report Delivered to Congress: October 11, 2017.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

               Czech Republic--UH-1Y Utility Helicopters

       The Government of the Czech Republic has requested the 
     possible sale of twelve (12) UH-1Y utility helicopters, 
     twenty-five (25) T-700 GE 401C engines (twenty-four (24) 
     installed, one (1) spare), thirteen (13) Honeywell Embedded 
     GPS/INS (EGI) (twelve (12) installed, one (1) spare), and 
     twelve (12) 7.62mm M240 Machine Guns. This request also 
     includes Brite Star II FLIR system, Aircraft Survivability 
     Equipment (ASE) (includes the AN/AAR-47 Missile Warning and 
     Laser Detection System, AN/ALE-47 Counter Measure Dispensing 
     System (CMDS) and the AN/APR-39 Radar Warning Receiver 
     (RWR)), Joint Mission Planning Systems, Helmet Mounted 
     Displays, communication equipment, small caliber gun systems 
     including GAU-17A and GAU-21, electronic warfare systems, 
     Identification Friend or Foe (1FF) Mode 4/5 transponder, 
     support equipment, spare engine containers, spare and repair 
     parts, tools and test

[[Page 15933]]

     equipment, technical data and publications, personnel 
     training and training equipment, U.S. government and 
     contractor engineering, technical, and logistics support 
     services, and other related elements of logistics and program 
     support. The estimated cost is $575 million.
       This proposed sale will support the foreign policy and 
     national security of the United States by helping to improve 
     the security of a NATO partner that is an important force for 
     ensuring peace and stability in Europe. The proposed sale 
     will support the Czech Republic's needs for its own self-
     defense and support NATO defense goals.
       The Czech Republic intends to use these helicopters to 
     modernize its armed forces and strengthen its homeland 
     defense and deter regional threats. This will contribute to 
     the Czech Republic's military goal of updating its 
     capabilities while further enhancing interoperability with 
     the United States and other NATO allies. The Czech Republic 
     will have no difficulty absorbing these helicopters into its 
     armed forces.
       This proposed sale of equipment and support will not alter 
     the basic military balance in the region.
       The principal contractors will be Bell Helicopter, Textron, 
     Fort Worth, Texas; and General Electric Company, Lynn, 
     Massachusetts. There are no known offset agreements proposed 
     in conjunction with this potential sale.
       Implementation of this proposed sale will require multiple 
     trips by U.S. Government and contractor representatives to 
     participate in program and technical reviews plus training 
     and maintenance support in country, on a temporary basis, for 
     a period of twenty-four (24) months. It will also require 
     three (3) Contractor Engineering Technical Service (CETS) 
     representatives to reside in country for a period of two (2) 
     years to support this program.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         Transmittal No. 17-47

     Notice of Proposed Issuance of Letter of Offer Pursuant to 
         Section 36(b)(1) of the Arms Export Control Act

                           Annex Item No. vii

       (vii) Sensitivity of Technology:
       1. The following components and technical documentation for 
     the program are classified as listed below:
       a. The UH-1Y-model has an Integrated Avionics System (IAS) 
     which includes two (2) mission computers and an automatic 
     flight control system. Each crew station has two (2) 8 x 6-
     inch multifunction liquid crystal displays (LCD) and one (1) 
     4.2 x 4.2-inch dual function LCD display. The communications 
     suite will have COMSEC ARC-210 Ultra High Frequency Very High 
     Frequency (UHF/VHF) radios with associated communications 
     equipment. The navigation suite includes Honeywell Embedded 
     Global Positioning System (GPS) Inertial Navigation System 
     (INS) (EGI) w/Precise Positioning Service (PPS), a digital 
     map system, a low-airspeed air data subsystem, and an AN/APX-
     123/A(V) IFF Transponder.
       b. The crew is equipped with the Optimized Top Owl (OTO) 
     helmet-mounted sight and display system. The OTO has a Day 
     Display Module (DDM) and a Night Display Module (NDM). The 
     UH-1Y has survivability equipment including the AN/AAR-47 
     Missile Warning and Laser Detection System, AN/ALE-47 Counter 
     Measure Dispensing System (CMDS) and the AN/APR-39 Radar 
     Warning Receiver (RWR) to cover countermeasure dispensers, 
     radar warning, incoming/on-way missile warning and on-
     fuselage laser-spot warning systems.
       c. The following performance data and technical 
     characteristics are classified as follows for the UH-1Y 
     Airframe: countermeasure capability--up to SECRET, counter-
     countermeasures capability--SECRET, vulnerability to 
     countermeasures--SECRET, vulnerability to electromagnetic 
     pulse from nuclear environmental effects--SECRET.
       2. If a technologically advanced adversary were to obtain 
     knowledge of the specific hardware and software elements, the 
     information could be used to develop countermeasures which 
     might reduce weapon system effectiveness.
       3. The consequences of the loss of this technology to a 
     technologically advanced or competent adversary could result 
     in the compromise of equivalent systems, which in turn could 
     reduce those weapons systems' effectiveness, or be used in 
     the development of a system with similar or advanced 
     capabilities.
       4. A determination has been made that the Czech Republic 
     can provide substantially the same degree of protection for 
     the sensitive technology being released as the U.S. 
     Government. This sale of the UH-1Y helicopter and associated 
     weapons will further U.S. foreign policy and national 
     security objectives.
       5. All defense articles and services listed in this 
     transmittal are authorized for release and export to the 
     Government of the Czech Republic.
                                  ____

                                                  Defense Security


                                            Cooperation Agency

                                     Arlington, VA, Oct. 11, 2017.
     Hon. Bob Corker,
     Chairman, Committee on Foreign Relations,
     U.S. Senate, Washington, DC.
       Dear Mr. Chairman: Pursuant to the reporting requirements 
     of Section 36(b)(1) of the Arms Export Control Act, as 
     amended, we are forwarding herewith Transmittal No. 17-46, 
     concerning the Air Force's proposed Letter(s) of Offer and 
     Acceptance to the Government of the Netherlands for defense 
     articles and services estimated to cost $53 million. After 
     this letter is delivered to your office, we plan to issue a 
     news release to notify the public of this proposed sale.
           Sincerely,
                                                Charles W. Hooper,
                                Lieutenant General, USA, Director.
       Enclosures.


                         Transmittal No. 17-46

     Notice of Proposed Issuance of Letter of Offer Pursuant to 
         Section 36(b)(1) of the Arms Export Control Act, as 
         amended
       (i) Prospective Purchaser: The Government of the 
     Netherlands.
       (ii) Total Estimated Value:
       Major Defense Equipment* $48 million.
       Other $5 million.
       Total $53 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       Twenty-six (26) AIM-120 C-7 Advanced Medium Range Air-to-
     Air Missiles (AMRAAM).
       One (1) AMRAAM Spare Guidance Section.
       Non-MDE: Twenty (20) AMRAAM Captive Air Training Missiles 
     (CATM), missile containers, control section spares, weapon 
     systems support, test equipment, spare and repair parts, 
     publications and technical documentation, personnel training, 
     training equipment, U.S. Government and contractor 
     engineering, logistics, technical support services, and other 
     related elements of logistics and program support.
       (iv) Military Department: Air Force (X7-D-YAE).
       (v) Prior Related Cases, if any: NE-D-YME for two hundred 
     (200) AIM-120B.
       (vi) Sales Commission, Fee, etc., Paid, Offered, or Agreed 
     to be Paid: None.
       (vii) Sensitivity of Technology Contained in the Defense 
     Article or Defense Services Proposed to be Sold: See Attached 
     Annex.
       (viii) Date Report Delivered to Congress: October 11, 2017.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

                Government of the Netherlands--AIM-120 
         C-7 Advanced Medium Range Air-to-Air Missile (AMRAAM)

       The Government of the Netherlands has requested a possible 
     sale of twenty-six (26) AIM-120 C-7 Advanced Medium Range 
     Air-to-Air Missiles (AMRAAM), one (1) AMRAAM Guidance Section 
     Spare (MDE items), twenty (20) AMRAAM Captive Air Training 
     Missiles (CATM), missile containers, control section spares, 
     weapon systems support, test equipment, spare and repair 
     parts, publications and technical documentation, personnel 
     training, training equipment, U.S. Government and contractor 
     engineering, logistics, technical support services, and other 
     related elements of logistics and program support. The 
     estimated total case value is $53 million.
       This proposed sale will support the foreign policy and 
     national security objectives of the United States by helping 
     to improve the security of a NATO ally which continues to be 
     an important force for political stability and economic 
     progress in Europe.
       The proposed sale will improve the Netherland's 
     capabilities for mutual defense, regional security, force 
     modernization, and U.S. and NATO interoperability. This sale 
     will enhance the Royal Netherlands Air Force's ability to 
     defend the Netherlands against future threats and contribute 
     to current and future NATO operations. The Netherlands 
     maintains the AIM-120B in its inventory and will have no 
     difficulty absorbing these missiles into its armed forces.
       The proposed sale of this equipment will not alter the 
     basic military balance in the region.
       The prime contractor will be Raytheon Missile Systems, 
     Tucson, AZ. There are no known offset agreements proposed in 
     connection with this potential sale.
       Implementation of this proposed sale will not require the 
     assignment of any additional U.S. Government personnel or 
     contractor representatives to the Netherlands.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         Transmittal No. 17-46

     Notice of Proposed Issuance of Letter of Offer Pursuant to 
         Section 36(b)(1) of the Arms Export Control Act

                           Annex Item No. vii

       (vii) Sensitivity of Technology:
       1. AIM-120C Advanced Medium Range Air-to-Air Missile 
     (AMRAAM) is a radar-guided missile featuring digital 
     technology and micro-miniature solid-state electronics. 
     AMRAAM capabilities include look-down/shoot-down, multiple 
     launches against multiple targets, resistance to electronic 
     counter measures, and interception of high flying, low 
     flying, and maneuvering targets. The AMRAAM is classified 
     CONFIDENTIAL, major components and subsystems range

[[Page 15934]]

     from UNCLASSIFIED to CONFIDENTIAL, and technology data and 
     other documentation are classified up to SECRET.
       2. If a technologically advanced adversary obtains 
     knowledge of the specific hardware and software elements, the 
     information could be used to develop countermeasures or 
     equivalent systems that might reduce weapon system 
     effectiveness or be used in the development of a system with 
     similar or advanced capabilities.
       3. A determination has been made that the Government of the 
     Netherlands can provide substantially the same degree of 
     protection for the sensitive technology being released as the 
     U.S. Government. This proposed sale is necessary to the 
     furtherance of the U.S. foreign policy and national security 
     objectives outlined in the policy justification.
       4. All defense articles and services listed in this 
     transmittal are authorized for release and export to the 
     Government of the Netherlands.
                                  ____

                                                  Defense Security


                                           Cooperation Agency,

                                      Arlington, VA, Oct. 6, 2017.
     Hon. Bob Corker,
     Chairman, Committee on Foreign Relations,
     U.S. Senate, Washington, DC.
       Dear Mr. Chairman: Pursuant to the reporting requirements 
     of Section 36(b)(1) of the Arms Export Control Act, as 
     amended, we are forwarding herewith Transmittal No. 17-28, 
     concerning the Missile Defense Agency's proposed Letter(s) of 
     Offer and Acceptance to the Kingdom of Saudi Arabia for 
     defense articles and services estimated to cost $15 billion. 
     After this letter is delivered to your office, we plan to 
     issue a news release to notify the public of this proposed 
     sale.
           Sincerely,
                                                Charles W. Hooper,
                                 Lieutenant General, USA Director.
       Enclosure.


                         transmittal no. 17-28

     Notice of Proposed Issuance of Letter of Offer Pursuant to 
         Section 36(b)(1) of the Arms Export Control Act, as 
         amended
       (i) Prospective Purchaser: Saudi Arabia.
       (ii) Total Estimated Value:
       Major Defense Equipment* $9 billion.
       Other $6 billion.
       Total $15 billion.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       Forty-four (44) Terminal High Altitude Area Defense (THAAD) 
     Launchers.
       Three hundred sixty (360) THAAD Interceptor Missiles.
       Sixteen (16) THAAD Fire Control and Communications Mobile 
     Tactical Station Group.
       Seven (7) AN/TPY-2 THAAD Radars.
       Non-MDE:
       Also included are THAAD Battery maintenance equipment, 
     forty-three (43) prime movers (trucks), generators, 
     electrical power units, trailers, communications equipment, 
     tools, test and maintenance equipment, repair and return, 
     system integration and checkout, spare/repair parts, 
     publications and technical documentation, personnel training 
     and training equipment, U.S. Government and contractor 
     technical and logistics personnel support services, 
     facilities construction, studies, and other related elements 
     of logistics and program support.
       (iv) Military Departments: Missile Defense Agency (XX-I-
     W1B, XX-I-WIC); Army (XX-B-TFP, XX-B-BDP, XX-B-ZAO, XX-B-DAH, 
     XX-B-ZAQ, XX-B-OZY, XX-B-HFA); NSA (XX-M-AAG).
       (v) Prior Related Cases, if any: SR-I-WIA Basic, 2 February 
     2015; Amendment 1, 25 August 2016.
       (vi) Sales Commission, Fee. etc., Paid, Offered, or Agreed 
     to be Paid: None.
       (vii) Sensitivity of Technology Contained in the Defense 
     Article or Defense Services Proposed to be Sold: See Attached 
     Annex.
       (viii) Date Report Delivered to Congress: October 6, 2017.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          policy justification

 Saudi Arabia--Terminal High Altitude Area Defense and Related Support 
                         Equipment and Services

       The Government of Saudi Arabia has requested a possible 
     sale of forty-four (44) Terminal High Altitude Area Defense 
     (THAAD) launchers, three hundred sixty (360) THAAD 
     Interceptor Missiles, sixteen (16) THAAD Fire Control and 
     Communications Mobile Tactical Station Group, seven (7) AN/
     TPY-2 THAAD radars. Also included are THAAD Battery 
     maintenance equipment, forty-three (43) prime movers 
     (trucks), generators, electrical power units, trailers, 
     communications equipment, tools, test and maintenance 
     equipment, repair and return, system integration and 
     checkout, spare/repair parts, publications and technical 
     documentation, personnel training and training equipment, 
     U.S. Government and contractor technical and logistics 
     personnel support services, facilities construction, studies, 
     and other related elements of logistics and program support. 
     The estimated cost is $15 billion.
       This proposed sale will support the foreign policy and 
     national security objectives of the United States by 
     improving the security of a friendly country. This sale 
     furthers U.S. national security and foreign policy interests, 
     and supports the long-term security of Saudi Arabia and the 
     Gulf region in the face of Iranian and other regional 
     threats. This potential sale will substantially increase 
     Saudi Arabia's capability to defend itself against the 
     growing ballistic missile threat in the region. THAAD's exo-
     atmospheric, hit-to-kill capability will add an upper-tier to 
     Saudi Arabia's layered missile defense architecture and will 
     support modernization of the Royal Saudi Air Defense Force 
     (RSADF). Saudi Arabia will have no difficulty absorbing this 
     equipment into its armed forces.
       The proposed sale of this equipment and support will not 
     alter the basic military balance in the region.
       The principal contractors for the THAAD system are Lockheed 
     Martin Space Systems Corporation, Dallas, TX, Camden, AR, 
     Troy, AL and Huntsville, AL; and Raytheon Corporation, 
     Andover, MA. There are no known offset agreements proposed in 
     connection with this potential sale.
       Implementation of this proposed sale will require one 
     hundred eleven (111) contractor representatives and eighteen 
     (18) U.S. Government personnel in country for an extended 
     period of time.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         transmittal no. 17-28

     Notice of Proposed Issuance of Letter of Offer Pursuant to 
         Section 36(b)(1) of the Arms Export Control Act

                           Annex Item No. vii

       (vii) Sensitivity of Technology:
       1. The Terminal High Altitude Area Defense System (THAAD) 
     Ballistic Missile Defense (BMD) System contains classified 
     CONFIDENTIAL/SECRET components and critical/sensitive 
     technology. The THAAD Fire Unit is a ground-based, forward 
     deployable terminal missile defense system that represents 
     significant technological advances. The THAAD system 
     continues to hold a technology lead over other terminal 
     ballistic missile systems. THAAD is the first weapon system 
     with both endo- and exo- atmospheric capability developed 
     specifically to defend against ballistic missiles. The higher 
     altitude and theater-wide protection offered by THAAD 
     provides more protection of larger areas than lower-tier 
     systems alone. THAAD is designed to defend against short, 
     medium, and intermediate range ballistic missiles. The THAAD 
     system consists of four major components: Fire Control/
     Communications, Radar, Launchers, and Interceptor Missiles.
       2. The THAAD BMD System contains sensitive/critical 
     technology, primarily in the area of defense and production 
     know-how and primarily inherent in the design, development 
     and/or manufacturing data related to certain critical 
     components. Information on operational effectiveness with 
     respect to countermeasures and counter-countermeasures, low 
     observable technologies, select software documentation and 
     test data are classified up to and including SECRET.
       3. The THAAD BMD System contains Controlled Cryptographic 
     Items (CCI) that are used for both system internal links and 
     for external communications. These items consist of key 
     loading devices, network encryptors, secure telephones, voice 
     radios, tactical data radios, and mission data radios. 
     Specific CCI used for the Saudi Arabia case will be 
     determined through the COMSEC Release Request (CRR) process, 
     initiated through USCENTCOM once an interoperability 
     requirement has been established. NSA will identify 
     releasable items, in parallel with staffing and validation of 
     the CRR by the Joint Staff. The Committee for National 
     Security Systems (CNSS) reviews and provides final approval 
     of the items and quantities.
       4. AN/VCR-90, AN/VCR-91, AN/VCR-92 are different 
     configurations of the Single Channel Ground and Airborne 
     Radio System (SINCGARS) family. SINCGARS is a tactical radio 
     providing secure jam-resistant voice and data communications 
     of command, control, targeting, and technical information for 
     the Terminal High Altitude Air Defense (THAAD) system. The 
     spread-spectrum frequency hopping Electronic Counter-Counter 
     Measures (ECCM) technology resident in the radio is sensitive 
     but UNCLASSIFIED. While sensitive, the frequency-hopping 
     algorithms used to generate the ECCM waveform are unique to 
     the country of ownership and cannot be manipulated by 
     potential adversaries for use or interference with other 
     countries possessing SINCGARS technology. Should a potential 
     adversary come into possession of one of these radios, they 
     would have the potential to intercept operational command, 
     control, and targeting information. This potential problem is 
     mitigated by the fact that the customer can secure 
     information passed over the radio network using a commercial 
     grade security capability equivalent to an Advanced 
     Encryption Standard (AES) 256-bit encryption system whose 
     keys are controlled by the customer country.
       5. As with the SINCGARS family of radios, the AN/PRC-117 is 
     a tactical radio providing ECCM jam-resistant secure 
     communications for exchange of command, control, and 
     targeting information within the THAAD system tactical radio 
     network. ECCM capabilities are sensitive but UNCLASSIFIED and 
     algorithms for these jam-resistant waveforms are unique to 
     the customer country.

[[Page 15935]]

     Unlike the SINCGARS radios, the AN/PRC-117 uses Type 1 
     encryption. When loaded with U.S. crypto keys, the system is 
     then CLASSIFIED up to SECRET. Should a potential adversary 
     come into possession of one of these radios, the customer 
     country can quickly remotely rekey remaining radios, 
     preventing potential adversaries from understanding received 
     command, control, and targeting information.
       6. The Defense Advanced Global Positioning System (GPS) 
     Receiver (DAGR) is a handheld GPS location device with map 
     background displaying the user's location. Unlike commercial 
     grade GPS receivers capable of receiving Standard Positioning 
     Signals (SPS) from GPS satellites, the DAGR is capable of 
     receiving Precise Positioning Signals (PPS). PPS satellite 
     signals provide significantly more accurate location data 
     than do SPS signals. This capability within DAGRs is possible 
     due to the Selective Availability Anti-Spoofing Module 
     (SAASM). The SAASM is an encrypted device permitting both 
     receipt of PPS signals and the benefit of preventing 
     potential adversaries from spoofing the system to display 
     incorrect location information. The SAASM capability within 
     the DAGR is sensitive but UNCLASSIFIED. The SAASM 
     capabilities are sensitive due to the system's ability to 
     access restricted PPS GPS satellite signals and to prevent 
     spoofing. While sensitive, the ability of potential 
     adversaries to exploit the system is limited.
       7. The same SAASM capabilities resident in the DAGR are 
     also resident in the THAAD GPS timing system. The THAAD 
     system requires highly precise timing hacks in order 
     accurately track and engage targets. The PPS signals 
     generated by GPS satellites provide this precise timing 
     information. The SAASM device resident in the timing system 
     permits receipt of this precise PPS timing data. The SAASM is 
     an encrypted device permitting both receipt of PPS signals 
     and the benefit of preventing potential adversaries from 
     spoofing the system to display incorrect data. The SAASM 
     capability within the timing system is sensitive but 
     UNCLASSIFIED.
       8. If a technologically advanced adversary were to obtain 
     knowledge of specific hardware, the information could be used 
     to develop countermeasures which might reduce weapons system 
     effectiveness or be used in the development of a system with 
     similar or advanced capabilities.
       9. A determination has been made that Saudi Arabia can 
     provide substantially the same degree of protection for 
     sensitive technology being released as the U.S. Government. 
     This proposed sustainment program is necessary to the 
     furtherance of the U.S. foreign policy and national security 
     objectives outlined in the policy justification.
       10. All defense articles and services listed on this 
     transmittal are authorized for release and export to the 
     Kingdom of Saudi Arabia.

                          ____________________